When the government's outlays equal its tax revenue, then the budget
A) is in deficit.
B) is in surplus.
C) is balanced.
D) could be either in surplus or deficit.
E) is legal only because expenditures equal tax revenues.
C
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Which of the following variables is fixed in the aggregate expenditure model?
A) output B) real GDP C) consumption D) investment E) price level
The price of a firm's product is $6 and the firm faces a constant marginal cost of $4 that is equal to its (constant) average total cost. If the firm does not sell a unit of its product on the day it was produced, it is sold in a secondary market for a price of $3. If the firm does not sell a unit of its product on the day it was produced, there is a ________ of ________ per unit not sold.
A) loss; $2 B) loss; $1 C) profit; $1 D) profit; $2
Which of the following are considered ad valorem taxes?
A) taxes assessed by charging a rate equal to a percentage of an item's price B) taxes assessed by charging a flat amount per unit purchased C) taxes based on the amount of debt that the government must repay D) taxes based on the amount of spending the government will undertake
In terms of importance, what place does the advent of the euro hold in economic history?
A) It is an important innovation in the evolution of fixed exchange rates. B) It is an interesting experiment from which we can learn lessons. C) It is a bold experiment, affecting hundreds of millions of people in one of the most prosperous economic regions. D) In the grand scheme of things, the euro is less important than the fixed exchange rate scheme devised in Bretton Woods, New Hampshire.